UP turns focus to solar power, to generate 10,700 MW by 2022

The Uttar Pradesh government has proposed to source 8 per cent of its electricity requirements through renewable energy by 2022.

According to the Draft UP Solar Power Policy-2017, the state government has also proposed to meet the target of generating 10,700 MW solar power. This includes 4,300 MW from rooftop solar projects, by financial year 2022.

Under the proposed policy, the government will set up solar parks with a minimum capacity of 100 MW. The State, through the Uttar Pradesh Power Corporation Limited (UPPCL) or the distribution licensee, will offer to purchase 100 per cent of the power generated from a solar park.

It will also be mandatory to have at least 50 per cent of the power generated from the parks to be sold to a UPPCL Distribution Licensee. These benefits will be extended to private solar park developers. A Central Financial Assistance (CFA) of ₹ 25 lakh for detailed project report for each solar park and ₹ 25 lakh per MW or 30 per cent of project cost will be made available for the solar park.

The state has also proposed to provide a subsidy of ₹ 10,000 per KiloWatt to a maximum limit of subsidy ₹20,000 per consumer to encourage grid connected roof top solar set ups. The incentive will be available on a first-come, first served basis for the first 100 MW applications submitted to the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA). The subsidy will be disbursed to the beneficiary after successful installation and commissioning of rooftop solar systems with net metering.

Electricity duty on solar power shall be exempted for sale to the distribution licensee for ten years.

But just formulating a policy will not suffice for developing the clean energy sector in the state. Jasmeet Khurana , Associate Director – Consulting at Bridge to India said, “The demand for solar power will come from UP. But concerns regarding ease of doing business persist as the state has been pushing developers for a downward revision of already committed PPAs.”